TILT Holdings Inc (CSE:TILT) (OTCQB:SVVTF) has announced it has reached the milestone of supporting 2,000 brands, but TILT stock is down 2.9% today.
TILT Holdings was formed as part of a four-way merger last year with the intention of becoming a leading end-to-end solutions provider within the cannabis industry offering services such as dispensary operation, cannabis delivery, and software solutions. Despite today's announcement that the company has provided solutions across a variety of areas to 2,000 brands in North America, the market has yet to acquiesce in TILT's philosophy, as evidenced by the 80% decline in TILT stock in 2019 so far.
“Supporting 2,000 brands is a major milestone for TILT and its subsidiaries,” said Mark Scatterday, Interim CEO of TILT Holdings. “Achieving this number is a testament to TILT’s commitment to providing value to cannabis retailers through technology, hardware and software solutions." TILT has three major subsidiaries under its portfolio Jupiter Research LLC, Baker Technologies Inc, and Blackbird Logistics Corporation, which all specialize in unique aspects of the cannabis industry.
Despite the broad diversity and expansion of the company's operations, there are some prominent issues that have contributed to TILT stock spending the majority of 2019 in the red. The most alarming of which is the company's financial position in Q1, which reported total assets of $541.4 million USD, but $145.8 million USD of this was recognized as goodwill, and a further $210.8 million USD was in intangible assets. More concerningly was the company's total liabilities as of March 31 "outpacing total current assets by more than $54 million.”
One promising aspect for TILT stock is its Jupiter subsidiary, a leading manufacturer of award-winning cannabis vapes that was acquired by TILT in January. Consumer consumption trends are leaning towards alternatives to traditional smoking, and vapes look set to lead the way. In 2019, cannabis concentrate sales exceeded flower sales in California for the first time ever, and with Jupiter vapes held in high regard among consumers, it may be a port in the storm for investors in TILT shares.
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